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Skye Resources Inc.: Guatemalan Police Move to End Land Occupation at Fenix

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Skye Resources Inc. ("Skye") (TSX:SKR) announced that the national police force of Guatemala today commenced enforcement of court ordered evictions to remove squatters who had been illegally occupying, for several months, land leased by Compania Guatemalteca de Niquel (CGN) for its Fenix project. CGN is majority owned by Skye. The operation is being carried out by a special unit of the national police that has been trained to avoid violence in such situations.

The action came after the First Instance Criminal Court of Guatemala, responsible for deciding land dispute issues such as this, ruled in early December, 2006, in favour of CGN regarding its petition to ratify its legal title to the land. Since then, the company has worked to find a peaceful resolution to the dispute.

"We're disappointed that the organizers of the land invasions were not able to keep their commitment to have their people leave the land so we could engage in further dialogue," said Ian Austin, Skye's President and CEO. "However, we're also thankful that the Guatemalan government has upheld the company's rights to the land and we remain committed to working with community leaders to find solutions to this important issue."

CGN management had met with the squatters' leaders in December 2006, and had been assured by the occupiers that they would depart the illegally occupied land so the company could discuss with stakeholders how CGN could address the squatters' concerns. This meeting was held under the auspices of the Bishop of Izabal.

"Land rights are a challenging issue throughout the country, but we believe that the programs we already have in place and our continuing commitment to employ as many local people as possible, while we develop the Fenix project, will help us work positively with the community," said Mr. Austin.

During 2006, CGN has supported work by the Government of Guatemala's National Land Title Office, to define title and boundary issues for land adjacent to CGN property. This work will help local communities step into a more certain future by helping to define their land rights.

Skye has maintained a strong community relations effort in the El Estor region for two years. As a result of recent events, Skye reaffirms it's commitment to an open dialog with the local communities and to working with local stakeholders to seek solutions to outstanding issues. Through the Raxche Foundation, Skye has also reaffirmed it's commitment to support the advancement of the regional health system. The Hospital T'zunum'ha, which was heavily damaged during violent incidents in November, will again be rehabilitated to provide medical care to local residents.

About Skye

Skye is an international mining company focused on becoming a new mid-tier nickel producer. The Company acquired the rights to its Guatemalan lateritic nickel project (the Fenix Project) in December 2004 and in September 2006 received the results of a feasibility study for a ferro-nickel operation project at Fenix using proven conventional smelting technology.

Cautionary Notices:

This news release contains certain forward-looking statements that involve risks and uncertainties, such as statements of Skye's plans, objectives, strategies, expectations and intentions. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to Skye, or its management, are intended to identify such forward-looking statements. Many factors could cause Skye's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. The forward-looking statements included in this news release represent Skye's views as of the date of this news release. While Skye anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of this news release. All subsequent written and oral forward-looking statements attributable to Skye or persons acting on its behalf are expressly qualified in their entirety by this notice.